Downsizing has an immediate effect on costs,and much of the evidence suggests that it:
A) improves communication.
B) strengthens social networks.
C) hurts long-term organizational effectiveness.
D) increases the motivation of remaining employees.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Downsizing may reduce immediate costs, but it often has negative effects on the long-term effectiveness of an organization. This includes decreased morale and motivation of remaining employees, increased workload and stress, and potential loss of knowledge and expertise. While downsizing could potentially improve communication and strengthen social networks, much of the evidence suggests that these positive effects are outweighed by the negative consequences on the organization as a whole. Therefore, choice C is the best answer.

Downsizing Has an Immediate Effect on Costs,and Much of the Evidence